Manatee County Businesses Left Holding the Bag on Solar Rebates

HOLMES BEACH – When Ashok Sawe retrofitted his Anna Maria Island resort with a solar energy system, he did so because he believes in the philosophy of using the sun instead of fossil fuels whenever possible. Sawe and his wife had already taken multiple measures to make the Palm Tree Villas more eco-friendly, but a statewide program offering rebates for individuals and businesses who invested in solar energy would finally allow them to take a giant leap forward. For as deep as their commitment to sustainable business practices ran, it simply wasn't a cost-effective investment without help from the state.

The Sawes invested over $110,000 in an electricity-generating and water-heating solar system to service their villas, with promised rebates of just over $50,000. At this savings, it would still take quite some time to recoup their investment, but their commitment to green living made it worthwhile. Unfortunately, like thousands of Floridians, the Sawes were left holding the bag when money for the state's program ran out and the legislature failed to fund it in this year's budget.

For the Sawes, the timing of the blow couldn't have been worse. An unseasonably cold winter and fears related to the oil spill have both affected tourism this year. Waiting on $50,000 of promised funds adds to an already difficult time.

"I'm still glad that I did it, because of the environmental aspects, but we were really counting on the rebates," Ashok told me.

Businesses and individuals that are waiting for their promised relief have been told very little – mostly limp assurances that rebates will be paid as soon as the funds are allocated, though there's very little optimism considering the condition of Florida's budget.

In the big picture, this seems short-sided. Given our current unemployment problems and the recent oil industry disasters, jump starting a solar boom seems like a no-brainer, but industry experts say it's more complicated than it seems. Jim Roark, who owns Roark Solar in Sarasota has been in the solar energy business since 1978 and explained that the rebate program was a double-edged sword that created a host of its own problems.

"You really have two sides of that issue," Roark explained. "When the rebates were offered, all of a sudden you had dozens of new solar contractors popping up in the area, people who had no experience in the industry, but saw dollar signs."

Roark explained that many upstarts would hire one electrical contractor, which would allow them to do solar electrical systems. However, they were soon doing pools, hot water heaters and other areas they were unqualified to handle.

"Once the rebates came out, a lot of people got snookered," Roark told me. "It was kind of like the old aluminum siding salesman, you know? Just take a look at the yellow pages before the rebates and how few listings there were for solar contractors. Then all of a sudden they were everywhere. A lot of the contractors knew that the money was gone and that these people weren't going to get rebates, but they took the money and ran. Now they've gone up to New Jersey and places where rebates are hot again and it's really left the solar industry with a black eye."

Roark blames the entire philosophy of rebates and says that they devalue the product, doing little more than pushing future sales forward, while a host of "bandwagoners" jump aboard to get in on the spoils.

"Before the rebates, solar pool heating was the only way that you could sustain yourself as a solar contractor in Florida," said Roark. "Solar pool heaters have never been on welfare. They've had to survive on their own merit. They're sold on their own value and efficiency."

Roark concedes that accessibility is a major problem when it comes to solar conversion, noting that the young family of four that can really benefit from hot water conversion doesn't have the money laying around and that the senior couple that can afford it, doesn't use enough water to make it viable. In his mind, the government's role would be more useful on the financing end.

"Look, what have we done when we needed soldiers to be able to buy homes or kids needed to go to college?" Roark asked. "The government has always stepped in and guaranteed loans to make that investment possible. If you've got that kind of financing available then that family of four can convert and they start seeing the savings right away. With everything that's going on in the banking world today, no one is financing an industry like solar that's viewed as being kind of shaky. Even contractors have to do everything C.O.D. and no one on either end has the $60,000 to lay out up front for a full-scale conversion."

While Roark's points make it clear that such programs aren't necessarily the economic boost to an industry that they may seem, they are of little comfort to those waiting on long-promised rebates. A business or individual waiting on $50,000 isn't likely to be returning much money to the economy. Someone facing foreclosure while waiting on the equivalent of six month's worth of mortgage payments, or a business past due on the line of credit at their bank, can't get very far with assurances that they'll someday be repaid. They've done their part to invest in a greener future and put local businesses to work. The state promised to do theirs and should deliver.